Pols241 Sept 10 Week 1 Lecture 2
In the 1960’s more than 30 countries in Latin America turned to dictatorship.
o Latin American economies were export oriented
Sold their wealth and resources abroad to the US and Britain
Suppliers of raw materials, they didn’t manufacture anything themselves.
Instead they bought (imported) manufactured goods.
Low wages, Had a “export led development economy”
low taxes= o Have a cheap currency compared to that of buyers because they
good for can sell more.
competition Low wages
with other o If the cost of production, price of product and workers wage
Latin goes down then the countries can sell more of the product.
American Low taxes
countries. o Therefore you can sell the product for less because there is no
government services, except for the army and police, due to the
Quanity .vs. fact that the government has no way to fund the services
quality because of low taxes.
o Have militias, police ext
o Regimes were authoritarian
o Latin America moves towards a development model after they realize that they must
sell what they make.
However, they realize that they need to sell to their own population. Therefore
they start making things instead of exporting= creation of small industries.(ex.
Therefore they create a cycle based on the domestic market
2 social classes emerge
Have same macro- o 1) working class
economic interest o 2) bourgeoisie
o Concept of latifundia= large holdings of land
1920s: social structure is very simple (similar to feudal system- aristocracy is in
Changes with development of industry
Changes the politics and economic calculation
o Don’t want low taxes and wages because otherwise population
won’t buy domestic products. There is a clash between Latifundia (basicall the aristocracy) and the
bourgeoisie and working class (like democracy because it gives them a
voice against the aristocracy.)
Aristocracy Had footholds in church and military (basically made up the whole
Therefore they wanted to use both to squash communism and get rid of
Believed they had a duty to act on behalf of their families to protect
o Sold this concept to the Bourgeoisie
1) said communists want to kill you(exaggerate it)